Just towards the 24,000 VND mark, "turned around"

Just towards the 24,000 VND mark, "turned around"

Perhaps the first days of August are the time for the US dollar to shine. After a significant increase in the beginning of the month, the USD/VND exchange rate continued to rise on August 3. However, by the end of the session, the greenback "turned around" and decreased slightly but still accumulated results compared to the end of July.

Specifically, right from the beginning of the session, the Joint Stock Commercial Bank for Foreign Trade of Vietnam adjusted the USD/VND exchange rate to increase by 35 VND/USD compared to the end of yesterday. But by the end of the day, the US dollar at Vietcombank suddenly decreased by 10 VND/USD to 23,580 VND/USD - 23,920 VND/USD.

Compared to the end of July, the USD/VND exchange rate still increased by 65 VND/USD, equivalent to 0.28%.

USD VND price just reached 24000 VND, I turned the car around in picture 1 — The USD/VND exchange rate on August 3 continued to be "hot" in both the banking market and the free market, heading towards the 24,000 VND/USD mark. However, at the end of the session, the dollar suddenly "turned around". Illustrative photo

At the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), the USD/VND exchange rate also had a similar development. Closing the session on August 3, the exchange rate was listed at: 23,605 VND/USD - 23,905 VND/USD, an increase of 20 VND/USD.

Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) buys and sells USD at: 23,589 VND/USD - 23,929 VND/USD, up 52 VND/USD for buying but down 25 VND/USD for selling.

Vietnam Export Import Commercial Joint Stock Bank (Eximbank) listed the USD/VND exchange rate at: 23,600 VND/USD - 23,920 VND/USD, up 20 VND/USD for buying and up 30 VND/USD for selling.

The USD/VND exchange rate at Vietnam Technological and Commercial Joint Stock Bank is trading at: 23,596 VND/USD - 23,931 VND/USD, up 16 VND/USD for buying, up 11 VND/USD for selling.

In the free market, the US dollar has increased at a much faster rate.

In Hang Bac and Ha Trung - the "foreign currency streets" of Hanoi, the USD/VND exchange rate is commonly traded at: 23,700 VND/USD - 23,750 VND/USD, an increase of 50 VND/USD in both buying and selling directions compared to the end of yesterday.

Dollar hits 4-week high

The dollar rose near a four-week high despite Fitch's downgrade of the US credit rating that cast doubt on the country's fiscal outlook, and instead gained on strong private payrolls data.

Data on Wednesday showing U.S. private payrolls rose more than expected in July boosted the greenback, as the figures suggested continued labor market resilience could keep U.S. interest rates higher for longer.

That sent the dollar index to its highest since July 7 in the previous session. It was last at 102.56, not far from Wednesday's high of 102.78.

US Treasury yields also remained elevated in early Asian trade, with the benchmark 10-year Treasury yield last at 4.0977%, after rising to its highest since November at 4.1260% on Wednesday.

The euro rose 0.06% to $1.0944, recouping some losses from the previous session.

“The high ADP numbers, insofar as they are considered a measure of non-farm payrolls, on the surface could lead to a lot of upside potential for US Treasury yields and the US dollar,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank.

The closely watched US non-farm payrolls report is due out on Friday.

Other traders said a fresh wave of risk aversion after ratings agency Fitch downgraded the U.S. government's top credit rating had also sparked some safe-haven buying, supporting the borrowing dollar.

The move drew an angry response from the White House and left some investors dumbfounded, triggering a sell-off on Wall Street in the previous session.

Risk-off sentiment also weighed on the risk-sensitive Australian and New Zealand dollars, which each fell more than 1% on Wednesday.

“Risk assets have been hit harder by the Fitch downgrade. The US dollar has actually strengthened against most other currencies (and) there has been risk-off trading across all asset classes,” said Tina Teng, market analyst at CMC Markets.

Elsewhere, sterling rose 0.02% to $1.2714 ahead of the Bank of England's monetary policy decision later on Thursday, when the central bank is expected to raise interest rates to a 15-year high of 5.25% from 5%.

The yen edged up to 143.31 per dollar, though weakened near a more than three-week low of 143.545 hit earlier in the week.

Source